Contact: Joshua C. Schmand and Richard G. Vernon; Lerch, Early & Brewer (Maryland, USA)
The long-awaited proposed revisions to the “white collar” exemptions for executive, administrative, professional, outside sales, and computer employees under the Fair Labor Standards Act were issued this week by the Department of Labor. The proposal seeks to extend overtime pay to nearly five million workers. The proposed changes were mandated by President Obama in a March 2014 memorandum to Labor Secretary Thomas Perez directing him to “modernize and streamline the existing overtime regulations.” The Department last updated these regulations in 2004.
For the FLSA’s white collar exemptions to apply, employees – in addition to performing exempt duties – must be paid a predetermined and fixed salary that is not subject to reduction because of variations in the quality or quantity of work performed and that is at least a specified minimum amount. The Notice of Proposed Rulemaking, somewhat surprisingly, affects only the salary level required for white collar workers to be exempt; the duties tests applicable to the white collar exemptions remain unchanged, at least for now.
Read the article in full at, "Employers Get a Surprise in the Department of Labor’s Proposed Expanded Overtime Regulations."
Joshua Schmand is a litigation attorney at Lerch, Early & Brewer in Bethesda, Maryland who works on complex business, corporate, and commercial disputes and criminal matters, advising clients on the risks and benefits of litigation, preparing for trial when needed and serving as
a determined advocate. Rick Vernon is an employment attorney at Lerch, Early & Brewer in
Bethesda, Maryland who defends employers against all workplace claims made by individuals (applicants, employees and former employees), governmental agencies or other organizations. These encompass discrimination allegations, wage and hour disputes, EEOC complaints and sexual harassment claims, among others. Rick founded and co-chairs Lerch Early's Employment and Labor group. For more information about these overtime regulations contact Joshua (301) 347-1273 or jcschmand@lerchearly.com, or Rick at (301) 907-2818 or rgvernon@lerchearly.com.
This article originally appeared as a Lerch Early Employment & Labor Client Alert. To subscribe to receive the latest employment news and updates, visit http://www.lerchearly.com/publications/7.
